Question: Very difficult question. Professor never went over this. Please help Problem 4: Guess the Price (25 points) Al 84'. Val's mutual friend Sal is moving

 Very difficult question. Professor never went over this. Please help Problem

Very difficult question. Professor never went over this. Please help

4: Guess the Price (25 points) Al 84'. Val's mutual friend Sal

Problem 4: Guess the Price (25 points) Al 84'. Val's mutual friend Sal is moving and giving away some household items. Both Al 85 Val want the coffee table. Sal proposes they both tr}r to guess the original price and whoever comes closer gets the table. Suppose Al and Val both know nothing about the original price but are given that the correct value is somewhere between $400 and $1300. Their guesses are independent and uniformly distributed on the interval. What is the expected difference between Al's guess and Val's guess '3 1. The 2 guesses fall in an interval with uniform probability. One will be the maximum guess and the other will be the minimum. If they are the same, max = min. Find the derived distribution for Z = mas:{X1,X2} where X1,X2 N Uniform[0,1] and X1 and X2 are independent 2. Use your answer to problem 1.3 to give a distribution for W" = mn{X1,X2} 3. Find E[Z], E[W] 4. What is the expected difference between Al's guess and Val's guess

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